Altek — Interim / Quarterly Report 2018

Sep 13, 2018

Altek (3059 TT) 2018 1H Earnings Conference

==> picture [161 x 94] intentionally omitted <==

Altek Overview

==> picture [81 x 48] intentionally omitted <==

• Found in 1996

• Listed: Dec. 2002

• Paid-in capital: NT$ 2.74 bn

• Headquarter: Hsinchu, Taipei

• Factory: Kunshan, China

==> picture [69 x 75] intentionally omitted <==

==> picture [56 x 57] intentionally omitted <==

==> picture [71 x 59] intentionally omitted <==

==> picture [65 x 51] intentionally omitted <==

IPO in Taiwan First depth engines 3D-Sensing First Mobile Stock Exchange World's First 12.2 MP Depth Chip Android camera phone glucose meter launched with 3x optical zoom 1996 2002 2008 2009 2010 2011 2014 2016 2018

==> picture [97 x 64] intentionally omitted <==

==> picture [88 x 58] intentionally omitted <==

==> picture [88 x 57] intentionally omitted <==

Established ADAS NO.1 global DSC (AVM) ODM sales

==> picture [67 x 53] intentionally omitted <==

==> picture [76 x 52] intentionally omitted <==

First Dual-camera First ISP

==> picture [49 x 44] intentionally omitted <==

Insulin Delivery System started shipment

2

Altek Product Segments

==> picture [81 x 48] intentionally omitted <==

==> picture [577 x 375] intentionally omitted <==

----- Start of picture text -----

AI Camera
ACS
ADAS
ISPD 3D Depth Chip
Dual Camera + SW
Insulin Delivery System
Medical
Disposable Endoscope
----- End of picture text -----

3

Altek Core Competence

==> picture [81 x 48] intentionally omitted <==

ASIC Design

Image Algorism

(AI Deep Learning)

Optical Development

4

==> picture [105 x 88] intentionally omitted <==

==> picture [81 x 48] intentionally omitted <==

Smartphone DualCam Solution

==> picture [623 x 295] intentionally omitted <==

----- Start of picture text -----

The Strength of Altek Solution
SW+HW= Dual Lens + Software
SW License= Image Deep Learning Algorism
Raw (polished) Depth
SW
ISP
IP
Dual Camera Module
Command
----- End of picture text -----

5

ADAS AVM Solution

==> picture [81 x 48] intentionally omitted <==

Front camera

==> picture [33 x 11] intentionally omitted <==

Around view monitor system (AVM)

• Extended around view monitor system

Side view Side view camera camera

• Alley view monitoring system

• Moving Object Detection(MOD)

==> picture [33 x 11] intentionally omitted <==

==> picture [33 x 11] intentionally omitted <==

Side view camera

Rear view camera

==> picture [152 x 143] intentionally omitted <==

Bird view Bird view camera camera

Rear camera

6

AL 6100 3D Depth Chip

==> picture [81 x 48] intentionally omitted <==

==> picture [573 x 224] intentionally omitted <==

7

==> picture [81 x 48] intentionally omitted <==

New Generation of Depth Chip AL6100

Color Image

AL3200 (360p depth) AL6100 (720p depth)

==> picture [224 x 149] intentionally omitted <==

==> picture [224 x 150] intentionally omitted <==

==> picture [224 x 149] intentionally omitted <==

==> picture [224 x 149] intentionally omitted <==

==> picture [221 x 149] intentionally omitted <==

==> picture [221 x 150] intentionally omitted <==

8

AL6100 Our New 3D-Sensing Depth Chip Launched in CES 2018

==> picture [81 x 48] intentionally omitted <==

Altek Solution: Active Stereo Camera + 3D-sensing depth chip : Excellent precision up to 5M measuring distance, low power consumption, competitive cost

==> picture [332 x 308] intentionally omitted <==

Actual image (right). Real-time depth map to distinguish human, objects, and even fingers (Left).

9

AL6100 Applications

==> picture [485 x 361] intentionally omitted <==

==> picture [119 x 92] intentionally omitted <==

==> picture [246 x 92] intentionally omitted <==

==> picture [88 x 100] intentionally omitted <==

==> picture [81 x 48] intentionally omitted <==

==> picture [157 x 149] intentionally omitted <==

==> picture [95 x 154] intentionally omitted <==

==> picture [159 x 95] intentionally omitted <==

Store Security + People Count

==> picture [81 x 48] intentionally omitted <==

==> picture [166 x 84] intentionally omitted <==

==> picture [120 x 101] intentionally omitted <==

==> picture [342 x 255] intentionally omitted <==

==> picture [345 x 257] intentionally omitted <==

11

The Application of Anti-Collision

==> picture [81 x 48] intentionally omitted <==

==> picture [346 x 288] intentionally omitted <==

==> picture [354 x 288] intentionally omitted <==

AL6100

Our New 3D-Sensing Depth Applications

==> picture [81 x 48] intentionally omitted <==

==> picture [348 x 183] intentionally omitted <==

Application 1:

• In-Cabin active stereo IR sensing

• Gesture control

• Driver identification

• Driver drowsiness detection

• 3D printing, unlock the phone etc.

==> picture [348 x 195] intentionally omitted <==

Application 2:

• IRobot using long time exposure to scan its cleaning route

• Current Technologies are using IR,LIDAR

• Altek’s 3D sensing camera module for cleaning robot is more effective and cost saving than LIDAR

13

AI Camera from Edge to Cloud

==> picture [81 x 48] intentionally omitted <==

==> picture [526 x 264] intentionally omitted <==

大腦、決策

==> picture [84 x 172] intentionally omitted <==

神經、事件

==> picture [81 x 48] intentionally omitted <==

Qualcomm Prototype AI Camera

==> picture [211 x 262] intentionally omitted <==

Altek and Qualcomm collaborated to design and develop the VR 360 prototype camera to enhance the image processing and machine learning capabilities of smart cameras and smart home products. Applications such as surveillance cameras, virtual reality (VR) 360degree cameras, robots, sport cameras, wearable cameras, etc.

15

==> picture [106 x 89] intentionally omitted <==

==> picture [81 x 48] intentionally omitted <==

Cleveland Clinic Unveils Top 10 Medical Innovations for 2018

OCTOBER 25, 2017

Cleveland Clinic today announced the Top 10 Medical Innovations of 2018 at a multi-media presentation that capped off the 2017 Medical Innovation Summit. Now in its 15[th] year, the annual Medical Innovation Summit is organized by Cleveland Clinic Innovations, the development and commercialization arm of Cleveland Clinic.

The list of up-and-coming technologies was selected by a panel of Cleveland Clinic physicians and scientists, led by Michael Roizen, M.D., Chief Wellness Officer at Cleveland Clinic.

In order of anticipated importance, are the Top 10 Medical Innovations of 2018:

1) Hybrid Closed-Loop Insulin Delivery System

• 2) Neuromodulation to Treat Obstructive Sleep Apnea

3) Gene Therapy for Inherited Retinal Diseases

……………………………….

16

Disposable Endoscope

==> picture [224 x 376] intentionally omitted <==

==> picture [91 x 92] intentionally omitted <==

==> picture [81 x 92] intentionally omitted <==

==> picture [158 x 148] intentionally omitted <==

==> picture [182 x 58] intentionally omitted <==

==> picture [150 x 154] intentionally omitted <==

==> picture [196 x 148] intentionally omitted <==

Control Board and Camera Module

==> picture [81 x 48] intentionally omitted <==

==> picture [81 x 48] intentionally omitted <==

1H Financial Results

18

2Q18 Results

==> picture [81 x 48] intentionally omitted <==

In NT Thousands
	2018/Q2		2018/Q1		QoQ	2017/Q2		YoY
	Amount	%	Amount	%		Amount	%
Net Sales	3,455,233	100.0	2,336,313	100.0	48%	2,473,042	100.0	40%
COGS	(3,097,483)	(89.6)	(2,037,470)	(87.2)	52%	(2,132,324)	(86.2)	45%
Gross Profit	357,750	10.4	298,843	12.8	20%	340,718	13.8	5%
Operating Expense	(306,289)	(8.9)	(282,765)	(12.1)	8%	(341,463)	(13.8)	10%
Operating Profit	51,461	1.5	16,078	0.7	220%	(745)	1.0	-
Other Income/Expense	51,757	1.5	(3,172)	-	1732%	(4,450)	-	-
Profit before Tax	103,218	3.0	12,906	0.6	700%	(5,195)	-	-
Income Tax Expense	(19,620)	(0.6)	(9,324)	(1.0)	110%	(9,740)	(1.4)	101%
Net Profit	83,598	2.4	3,582	-	2234%	(14,935)	(0.6)	-
Profit Attributable to Parent	56,200	0.6	(27,153)	(1.2)	307%	(16,575)	(0.7)	-
After Tax EPS	0.21		(0.10)			(0.06)

19

1H18 Results

==> picture [81 x 48] intentionally omitted <==

In NT Thousands
	2018 1H		2017 1H		1H YoY
	Amount	%	Amount	%
Net Sales	5,791,546	100.0	5,134,149	100.0	13%
COGS	(5,134,953)	(88.7)	(4,392,165)	(85.5)	17%
Gross Profit	656,593	11.3	741,984	14.5	-12%
Operating Expense	(589,054)	(10.2)	(695,403)	(14.5)	-15%
Operating Profit	67,539	1.2	46,581	0.9	45%
Other Income/Expense	48,585	0.8	(20,280)	(1.4)	-
Profit before Tax	116,124	2.0	26,301	-	342%
Income Tax Expense	(28,944)	(1.0)	(16,106)	-	80%
Net Profit	87,180	1.5	10,195	-	755%
Profit Attributable to Parent	29,047	0.5	14,562	-	99%
After Tax EPS	0.11		0.05

20

Balance Sheet 2018

==> picture [81 x 48] intentionally omitted <==

In NT Thousands

	2018.06.30		2017.06.30
	Amount	%	Amount	%
Cash & Equivalent	5,794,436	34%	5,931,012	40%
Financial Assent	968,641	6%	610,425	4%
Account Receivable	4,116,655	24%	1,930,717	13%
Inventories	1,059,224	6%	1,124,767	8%
Other Current Assets	216,272	1%	237,572	2%
Current Assets	12,155,228	72%	9,834,493	67%
Non-Current Assets	4,740,162	28%	4,906,946	33%
Total Assets	16,895,390	100%	14,741,439	100%
Short-Term Debts	2,349,945	14%	2,158,000	15%
Account Payables	3,506,282	21%	1,643,882	11%
Other Current Liabilities	855,200	5%	1,332,670	9%
Non Current Liabilities	558,308	3%	525,339	4%
Total Debts	7,269,735	43%	5,659,891	38%
Equities	9,625,655	57%	9,081,548	62%
Debt & Equities	16,895,390	100%	14,741,439	100%

21

Safe Harbor Notice

==> picture [81 x 48] intentionally omitted <==

• Altek Corp.’s statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in any forwardlooking statements.

• The numbers of the presentation are prepared under IFRS.

22

==> picture [81 x 48] intentionally omitted <==

Thank You

The Imaging Expert.

23